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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. Danielle goes through some commentary from Bill Gurley, Fred Wilson and Marc Andreessen about burn rate and then goes on to discuss her own burn rate and others publicly weigh in.

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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

I would argue that the shut-down of September 2009 was equally severe yet there are signs that this “VC Ice Age” has begun to thaw. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. I argued for literally a year to slash burn.

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The Customer Development Manifesto: The Startup Death Spiral (part.

Steve Blank

Instead of a Sales team and organized to sell with a consistent and successful sales roadmap generating revenue, it is a disorganized and unhappy organization burning lots of cash. Because the company based its headcount and expenses on the expectation that the Sales organization will bring in revenue according to plan.

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Use agile budgeting to manage your cash

David Teten

Sean Colrock, Director of Client Partnerships at Wiss & Company , suggests at a minimum you track: cash on hand; fume date; and burn rate. In 2009 the organization moved to a run-rate methodology, which monitors spending quarter-over-quarter. Entrepreneur Jeff Magnusson provides a sample agile budgeting workbook.

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Startup Grind Turns the Tables on Mark Suster

Both Sides of the Table

You have been at five startups, you had an exit at your last company where you were the Chief Revenue Officer. And for every time I’ve felt hugely stressed that our burn rate was getting too high, and I didn’t know who else was going to fund the company, and I’m all in on this company, right?”

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Lean Startups aren't Cheap Startups

Steve Blank

And I can even imagine cases where it might burn more cash than a traditional startup. The key contributors to an out-of-control burn rate is 1) hiring a sales force too early, 2) turning on the demand creation activities too early, 3) developing something other than the minimum feature set for first customer ship. Lets see why.

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ProfessorVC: Where did Summer Go?

Professor VC

The artists received very little of album sales, but kept concert and merchandise revenue. The artists received very little of album sales, but kept concert and merchandise revenue. The artists had very few sales of albums, but gave a concert and commodity revenue. ► 2009. (7). 4 comments: translation services.